Bega Cheese's chairman says its strong balance sheet puts it in a good position to undertake more acquisitions.

But Australia's largest milk processor, Murray Goulburn, was something of an elephant in the room at the Sapphire Coast Turf Club as executive director Barry Irvin reflected on a landmark year for Bega at the company's annual meeting. Shareholders did not raise a single question on the possible transaction.

Bega is one of the frontrunners for the whole-of-company acquisition, along with Canada's Saputo. Others thought to have been in contention, but with their odds lengthening, include Fonterra, Parmalat and at least one Chinese group willing to part with $1 billion or more for the co-operative.

China's Inner Mongolia Yili Industrial Group and China Mengniu Dairy have made bids.

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Mr Irvin told shareholders Bega was well placed for acquisitions after a year marked by the purchase of the Mondelez grocery business, which included Vegemite, the $200 million sale of infant formula processing assets to Mead Johnson and a successful capital raising.

"Bega Cheese has always maintained a strong balance sheet, believing that we should be in a position to respond to business opportunities if and when they present themselves," he said.

"These opportunities will inevitably include both organic growth and acquisitions ... a very strong balance sheet positions us well for growth."

Another complication to the sale is two legal claims against Murray Goulburn. The ACCC is taking action in the Federal Court alleging the company engaged in unconscionable conduct and made false or misleading representation to farmers on milk prices it expected to pay in 2015-16.

In a separate class action, investors allege the market was misled ahead of Murray Goulburn's float.

Mr Irvin was not asked about Murray Goulburn, or the doubts that have been raised about Bega's capacity to fund the acquisition, during the meeting.

Challenging times

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But he acknowledged it had been a challenging few years for dairy farmers, and welcomed approaches from those wanting to supply Bega.

"It is, unfortunately, well documented that strategies or approaches for farm-gate milk price that do not reflect changes in the market are extraordinarily risky," he said.

He said Bega had long had the benefit of very supportive long-term shareholders, as highlighted by an oversubscribed $172 million capital raising in June.

Speaking soon after the capital raising, Bega corporate adviser David Williams said the overwhelming response showed the company could easily raise $500 million for the acquisition of an asset attractive to the market.

Bega set out to raise $122.5 million from institutional ­investors in three days. Kidder Williams, which handled the raising, closed the book before the end of the first day after receiving offers of $625 million.

Mr Irvin said the "bringing back home of Vegemite" as part of the Mondelez deal complemented Bega's traditional business and added significant new skills in branding sales and marketing.

"The response to the purchase of Vegemite, the opportunities in other products such as peanut butter and the momentum and enthusiasm of the combined teams gives the company great confidence that the decision to pursue this acquisition will bring both financial and cultural rewards," he said.

The $460 million acquisition was not settled until July 4 after being delayed by a cyber attack on Mondelez.

The delay means Bega will not receive the benefit of full-year sales and there will be transaction and implementation costs absorbed by the foods division in 2017-18.